Home launches and sales in suburbs shrink dramatically
Figures at their lowest since 2008 as loan curbs cool market sentiment
Published on Feb 8, 2014 6:50 AM
Suburban projects saw a sharp slowdown in the second half of last year, a Straits Times analysis has found.
Both unit launches and unit sales in the six-month period plunged to their lowest levels since the depths of the financial crisis in the second half of 2008, figures compiled by Jones Lang LaSalle show.
This happened after the Government capped debt-to-income ratios in late June last year under what it called a total debt servicing ratio (TDSR) framework.
The take-up rate for mass market private homes in July through December last year also slid to its lowest point since the first half of 2008.
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Before TDSR was imposed in June 2013, projects that were priced realistically had no problems in achieving a substantial take-up within a reasonable timeframe.
- Jones Lang LaSalle Singapore research director Ong Teck Hui